1, the market environment of Morgan Stanley is not good. In 2023, the A-share market was affected by multiple factors such as the Fed's interest rate hike expectation, Sino-US trade friction and tight liquidity, which led to intensified market volatility, depressed investor sentiment and pressure on the fund's net value.

2. The performance of Morgan Industrial Fund is poor. Shanghai Shangtou Morgan Industry Ruixuan A is an active equity fund, which mainly invests in growth and innovative industries. The latest quarterly report of the fund shows that as of June 30, 2023, the return rate of the fund since 2023 is far lower than the average level of its kind and the performance of the Shanghai and Shenzhen 300 Index. The fund manager said that the fund allocation in medicine, consumption, science and technology industries did not grasp the market rhythm and style conversion, which led to a big correction in some positions.

3. Morgan Stanley is under great redemption pressure. With the continuous decline of the net value of the fund, some investors will choose to redeem the fund shares to reduce losses or change positions for other products, which will lead to the shrinking of the fund scale and increase the difficulty and cost of fund operation.